For borrowers with interest-bearing unsecured debt exceeding 18 times their monthly income for three months in a row, the days of living on credit will come to an end if they do nothing.
If you are caught in this unfortunate predicament, you will be unable to charge new or recurring purchases to your credit card. These include utility bills and even issuing cheques or drawing cash from your unsecured line.
You will also be unable to apply for new credit cards, unsecured loans or increase your credit limit.
The Monetary Authority of Singapore has set a limit on how much outstanding debt you can owe on credit cards and unsecured loans across all financial institutions. The aim is to help borrowers avoid falling deep into debt.
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Read the full article at: http://www.straitstimes.com/business/deep-in-debt-theres-help
